4.

CHAPTER 4:
SERVICE QUALITY AND TOTAL QUALITY MANAGEMENT

4.1 Introduction

In the previous chapters concepts like marketing, relationship marketing, customer relations
management, customer experience management, customer satisfaction and loyalty were
discussed in detail. Grönroos (1994:352) identified relationship building and management as
very important cornerstones of marketing. Some attention has been given to the building of
relationships in the previous chapter, but not to management in general. Just as with any
business-related aspect, the basic principles of management apply to quality and therefore it
must be managed.

It is imperative to recognize that there should be a close link between marketing, customer
service and service quality, as stated by Christopher et al. (2002:4). Koenig-Lewis et al.
(2008:71) reported that these terms are sometimes used interchangeably and are very
closely related. Kotler et al. (2001:10) argued that customer satisfaction is closely linked to
quality, while Aldridge et al. (1998:200) warned that quality and satisfaction is not exactly the
same concept. They contended that satisfaction is more linked to an individual transaction,
while quality is a general approach.

It is therefore clear that this interaction indicates that the interrelatedness of these concepts
is vital to study and understand the consequences if a specific concept is neglected and
prerequisite to ensure a positive effect between it, which should be beneficial to all
stakeholders.

No service quality management process can be successful without the active involvement of
dedicated staff. Srikanthan et al. (2004:277) claimed that effective quality management
requires the ―collective intelligence and commitment of many people‖ in an organization.
This aspect, including the creation of cultural changes will be discussed in this chapter.

On the most basic and fundamental level, Vassallo (2003:405) correctly points out that when
customers pay for a service, they expect a certain level of quality. That forms part of the
transaction and is a given. Customers will not necessarily remind the service provider of this
key principle, but will most likely raise the issue should they experience any sub-standard or
problematic service level. This will then lead to a reactive approach or service recovery
interactions, which is not the ideal. Therefore managers must constantly remind their front-
line staff of this very basic but crucial concept.

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It is therefore important that this chapter should be dedicated to investigate these related
concepts and indicate the common grounds, differences and possible applications in the HEI
environment.

4.1.1 The difference between product quality and service quality

Earlier literature about quality only referred to product quality. In his classic study Levitt
(1972:41) still denies the existence of service quality as a separate concept and argues that
―there are only industries whose service components are greater or less than those of other
industries‖. On the other hand, Rathmell (1966:32) earlier observed that marketing had a
―strong goods orientation‖, although services represented 30-40% of economic activities at
that stage already. Blois et al. (2000:3) agree that Rathmell should be credited for the
emergence of services as a separate entity.

The service quality sub-discipline only became more relevant during the mid-1980s, as
reported by Clewes (2003:70). As this study is focused on the administrative environment at
the NWU, which can be considered as a services environment, it will not elaborate on the
product quality. Slade et al. (2000:1197) reported that the services industry is a fast growing
part of most economies and that competition in this sector is growing rapidly.

Yeo (2008a:267) argues that HEIs can be seen as part of the service industry, and that most
HEIs strive to retain students and seize the educational market. It also shares the same
complexity as is the case in the service sector. This approach is supported and forms part of
the major arguments of this study.

4.2 Quality

There are several derivatives for the term ―quality‖, including quality assurance, quality
control, quality management, quality audit and quality enhancement, as pointed out by
Abdous (2009:281). For clarity-purposes in this study the focus will remain on the all-
inclusive term ―quality‖.

Lagrosen et al. (2004:61) stated that it is vital to study the meaning of quality management
for the specific situation it is applied to. In this literature review the generic principles will be
considered, as well as the specific applications and meanings in the HEI environment.

In another later study Lagrosen et al. (2006:84) considered quality management as an ever-
present routine in modern business and warned that it should not be seen as just a number
of techniques or methods, but that several features needs to be taken into consideration to
utilize it successfully. They also claimed that quality management has grown from some
simple control procedures into a system of improvement that involves the entire organization.
It is therefore clear that the management of quality is not the sole responsibility of the quality
office or marketing department, as will be motivated in more detail below.
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Quality management processes address the issue of a product or service non-conformance,
according to Lomas (2004:158). It follows an approach of trying to prevent poor products or
services from being produced in the first place by focusing on processes and emphasizing
prevention rather than cure. This pro-active approach will not only be more cost-effective,
but also renders higher levels of customer satisfaction and loyalty, because of the first
positive experience of the customer.

Becket et al. (2008:40) warned that there is not yet agreement on the best quality
management and measurement approaches, and different stakeholders hold diverse
opinions on the meaning of the concept, as will be shown and discussed in this chapter.

Firstly the term quality needs to be defined by looking at the different descriptions that exist
in the literature for it. This should provide a more comprehensive background, as well as the
link between the term quality and previously discussed concepts like marketing, relationship
marketing, customer relations management, customer experience management, customer
satisfaction and loyalty.

4.2.1 Definition of quality

The word quality has been derived from the Latin word qualis, which can be literarily
translated to ―what kind of‖, as stated by Sahney et al. (2004:145). It is therefore not
surprising that there are so many different interpretations of its true meaning and definition.
They further described it as a ―slippery‖ term, and confirmed its meaning will depend on the
situation, its application and the specific measures used. Vidovich (2002:391) also reports
that the term ―quality assurance‖ is a complex term in the literature, and different viewpoints
are often challenged.

According to Kotler et al. (2001:10) quality in its most basic form can be defined as ―freedom
from defects‖. Most customer-centric companies, however, go beyond this simplistic view
and define it in terms of customer satisfaction, which is more appropriate.

Lagrosen et al. (2004:61) admitted that quality is one of the many concepts in the social
sciences that are extremely difficult to define, and found in their literature review five major
groups, namely:

 Transcendent definitions (subjective and personal)

 Product-based definitions (measurable)

 User-based definitions (customer satisfaction)

 Manufacturing-based definitions (conformance to specifications)

 Value-based definitions (in relation to costs)

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This study supports the transcendent, user-based and value-based approaches towards
quality management, as the other two are more applicable in the production-environment.

According to Abdous (2009:283) the lack of clarity about the concept of quality is cultivated
and encouraged by the diverse perspectives of the different groups of stakeholders. This is
also true in the HEI environment, where different groups of stakeholders (discussed earlier)
will expect and demand different quality-related outcomes from the University they are
involved with. It is a major challenge to ensure that these diverse requirements are
determined and established whether it can be met in a fashion that is affordable, logical,
practical and also beneficial for the University. If it cannot be addressed, a communication
strategy should be drawn up to inform the relevant stakeholders on the reasons why their
demands cannot be met.

4.2.2 Levels of quality management

There are three separate layers of quality management (in increasing involvedness)
according to Lagrosen et al. (2006:85):

 The lowest level consists of a series of practical tools and techniques.

 More comprehensive models and systems

 Values are the most important part of quality management and at the highest level.

Another model proposed refers to the different layers to illustrate the factors affecting quality
assurance in a HEI environment.

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 Figure 4.1: Situational factors affecting quality

Source: Abdous (2009:284)

This model implies that quality is a central value of any organization, which is embedded in
its daily operations. Factors like technological and financial constraints can affect it closely,
while issues like the needs of employees, the nature of competition and the mobility of
students can also have an effect on the outer layer.

In order to lay a proper theoretical basis for the understanding of quality management, it is
necessary to focus on the different practices reported in the literature to manage quality more
effectively.

4.2.3 Quality management initiatives and techniques

Roca-Puig et al. (2006:1112) distinguish between two aspects in the quality management
framework:

 Technical aspects have a more operational focus, and deal with data systems and
management

 Cultural or social aspects are more focused on the human and social side and will
entail human resource and change management issues.

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There are some resemblances between this and the two types of CRM-approaches (hard
and soft) referred to earlier. Neither of these aspects is wrong or right, but each represents a
vital part of a total approach needed to obtain success.

A similar approach is followed by Oldfield et al. (2000:86) when they refer to three
dimensions of SQ, namely:

 Service processes

 Interpersonal factors

 Physical evidence

These factors are visible and also measurable in the SQ-environment and can be managed
to ensure a pleasant service experience for customers.

According to Lagrosen et al. (2006:88) quality management techniques are the most tangible
quality management tools and list the following ones:

 Quality circles started in Japan in the early 1990‘s and consist of small groups of
employees who carry out quality control activities within the same workshop.

 Flow charting is considered as the most commonly used quality tool and closely
related to the value process orientation. It is also referred to as service systems
blueprinting or service mapping.

 Quality function deployment consists of a matrix (called the quality house) which
provides an overview of the association between customer wants and product
characteristics.

 Statistical process control involves the identification of processes and the clarification
of its contents, followed by the defining of the desired results.

 Failure mode and effect analysis are techniques to identify and prevent possible
errors.

 Poka-Yoke is another technique to prevent errors in the production process.

 Taguchi-methods strive to assess, improve and maintain quality in a cost-effective

way.

It is important to realize the there are several techniques available in the marketplace that will
assist managers to drive and improve their quality management initiatives. It is therefore
important that they should be aware of this, be able to identify the most appropriate, effective
and affordable techniques, implement and mage it by continuously evaluating to results and
effects of such a technique. Managers should also strive to be consistent and not be allowed
to be unnecessarily influenced by untested and unproven new tendencies, as it can
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confluence the staff if there are frequent changes in the quality management techniques and
approached used.

Choon Boey Lim (2008:135) investigated the implementation of quality policies at HEIs in
Malaysia and found the several staff members were not aware of these policies, due to
miscommunication and a lack of understanding of the policies. The study recommended that
HEIs should further be cautious not to just focus on the outputs and implement the policies in
a clumsy way.

Another vital and related component of the quality-environment that needs to be elaborated
on, is the cost element linked to the management of quality processes, which can exist at all
levels of quality management.

4.2.4 The cost of quality

It can be expected that there will be direct and indirect costs related to the implementation
and execution of quality practices in any organization, which have to be taken into
consideration. It should however not just be seen as a cost element, but rather as an
investment in loyal customers that will benefit the organization over a longer and sustainable
period of time.

Krishnan et al. (2000:844) referred to the American Society for Quality Control‘s definition of
quality cost as follows: ―It is a measure of costs specifically associated with the achievement
or non-achievement of product or service quality, as defined by all product or service
requirements established by the company and its contracts and society‖. This underlines the
important concept that a mere investment in quality initiatives is no guarantee that the aims
will be achieved. It is still vital that the quality initiatives need to be realistic, affordable, in
line with the company‘ general mission and vision; and that constant managerial control
mechanisms are needed to monitor the progress and positive outcomes.

The comparison of poor quality to the ―tip of an ice berg‖ was done by Bartholomew
(2001:40) and he warns that it affects the customers‘ future buying patterns. He
recommends that companies should not consider cutting back on quality costs when they
have to reduce their expenses, as it can have a lasting and negative effect.

4.3 Service quality (SQ)

The initial emphasis of quality management was focused for many years on product quality,
as has been reported by Levitt (1972:41). Service quality (SQ) is a more recent concept, but
widely accepted and implemented, as confirmed by Gi-Du Kang et al. (2004:266). There are
still numerous challenges and disagreements about this relatively new concept. However,
Abdullah (2005:305) reported that SQ has been linked to an increase in profitability and
therefore considered as a vital approach to ensure a competitive edge over competitors.
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This was made possible due to loyal customers committing to repeat purchases and
spreading positive word-of-mouth referrals, all concepts that have been discussed in
previous chapters and supported in principle.

In a later paper Abdullah (2006b:71) states that SQ is the most dominant competitive trend
influencing marketing and business strategies worldwide and ―a pervasive strategic force and
key strategic issue‖. This strong statement is a useful indication of the relative importance of
SQ as a new focus-area for all industries and also underlines the importance of accurately
measuring SQ-levels, developing methods to improve on it, and creating more loyal
customers in the process.

Paswan et al. (2007:76) argued that service tends to be vague and very difficult to evaluate
in terms of quality, especially before purchase and consumption. This concern will be
addressed later in more detail.

The concept of service marketing originated in the early 1970s, according to Grönroos
(1994:352) and led to more research in Scandinavia and Finland, including work of the
Nordic School of Services.

4.3.1 Definition of service quality

The word service has an important value and variety of meaning, according to Abdullah
(2006a:571), which poses challenges drawing up a generic viewpoint of SQ.

Douglas et al. (2008:21) attempted to define SQ by stating that it is an attitudinal type which
is related to customer satisfaction, but not equal to it. They admitted that there is no
consensus between academics about the relationship between these two concepts, as has
been argued before. They further referred to the relationship with customer loyalty, another
construct already discussed, and states that service providers will strive to establish loyalty to
ensure an increase in earnings or sustain its market share at minimum.

Abdullah (2005:307) and Abdullah (2006a:571) describes SQ as a general judgment

approach about service supremacy, but admits that its exact nature is still vague and needs
to be investigated further.

4.3.2 Characteristics of service

In order to comprehend the concept of SQ better, it is necessary to focus on the unique

characteristics of service as a notion. In his historical work Rathmell (1966:32) admitted that
there is not a clear understanding of the service concept.

According to Dimitriades (2006:784) and Brochado (2009:175) there are four characteristics
of service:

 Service is intangible – it cannot be seen or touched.

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  The service consumer cannot be separated from the service provider

 Services are different each time they are performed

 If a service is not consumed, it disappears.

This is partially challenged by Oldfield et al. (2000:87), who argue that service can be
tangible in the sense that the experience can be realistic enough to meet the description of
―feeling and touching it‖ and states that there are several tangible elements associated within
the service environment.

Blois et al. (2000:4) follow a different approach and argue that services are processes and
therefore the consumption is parallel to this process (and can thus not be separated from the
process); and that the consumer participates in the service process and thus impacts on the
development and outcome of the process. This approach shows a resemblance with the
―student as a co-product of the education process‖ that was discussed earlier. It also
illustrates the impact and involvement of the customer throughout the service interaction.

It has been argued before that it is necessary to ensure that sufficient SQ-levels are created
in order to satisfy customers and improve their loyalty. This is confirmed by Castro et al.
(2004:33), who mention two important benefits of providing an excellent service:

 ―Such service generates positive customer perception of the company.

 Excellent service has a significant effect on overall company performance.‖

Other benefits, like positive word-of-mouth references, customer advocacy and –retention, as
cost savings on marketing efforts to obtain new customers, have already been mentioned
and discussed in Chapter 2 (paragraphs 2.3.4, 2.4.3, 2.4.6, 2.4.8 & 2.5.2).

4.3.3 Perceived service quality and desired levels

It has been argued that the SQ-levels that students experience will either positively or
negatively affect their satisfaction and loyalty levels. Customers use their own framework,
experiences and perceptions to judge the SQ-levels delivered and decide on their desired
levels. Figure 4.2 (from the classic Parasuraman-study) illustrates the interaction between
the different involved constructs clearly:

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 Figure 4.2: Determinants of perceived service quality

Source: Parasuraman et al. (1985:48)

All the above dimensions can be applied in the HEI quality management environment, as
students will also enrol with a specific perception on the academic and administrative support
levels they are expecting, which may have been formed by former students‘ references, their
own needs and own past experiences. The ten determinants of SQ are also relevant to the
HEI environment (tangibles refer to facilities and equipment) and should be applied on a
continuous basis by staff.

SQ is directly related to the marketing concept, as the customer will evaluate and measure
their perceived service quality against what was promised to them. Popli (2005:18) confirms
this when stating the most effective way to measure quality, is to determine whether the
customers are satisfied. It implies that the determination of the required SQ-levels does not
need to be a very complicated process.

Lagrosen et al. (2006:89) therefore warned that marketing messages should be appealing,
but still be credible and accurate. Companies, including Universities, must be cautious not to
create unrealistic expectations, as it might cause more harm eventually if a dissatisfied
customer distributes negative word-of-mouth messages.

It is important to realize that every stakeholder in HE (students, government, professional

bodies) has a particular view of quality depending on their specific needs, as pointed out by
Voss et al. (2007:950). Gutman et al. (2003:105) also stated that the service delivery has to
live up to the service promises.

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Parasuraman (2006:591) later confirmed that achieving 100% service consistency will be
impossible and too costly, but that organizations must still endeavour to deliver excellent
service levels. He stated that the greater service consistency an organization can achieve,
the greater is the ability to apply outstanding service recovery when needed. This approach
may be applied and found to be effective, but should never be conveyed to the customers, as
they pay for the service and expects a higher level of service, as was also confirmed by
Piccoli et al. (2009:367).

When customers enter a relationship with a service provider, they have a desired level of
service in mind, according to Voss et al. (2007:950). This implies a service level which they
hope to receive and believe can be delivered. They also have a minimum level of acceptable
service as they realize that service will not always reach the desired levels- this is the
adequate service level. Between these two service levels there is a zone of tolerance that
customers are willing to accept. This implies that customers have a predicted level of
service, which is the level of service they believe the company will perform. It is vital that the
management of service-related companies understands and applies this principle.

According to Bielen et al. (2007:177) customers consider a number of benefits against the
costs and effort of buying and using a service. Waiting time, as discussed earlier, forms part
of these costs.

On the negative side, Yeo (2008b:153) warns that the following mistakes could lead to a
decrease in service standards and a resulting damaging customer experience:

 Not knowing what the customers want

 Below-standard service quality levels

 Inconsistencies in service execution

 Service delivery promises not kept

 Tolerance levels ignored

This confirms the importance of companies‘ implementing measures to ensure that they
know and understand the service levels their customers expects from them, as well as
monitoring their own performance on a regular basis to ensure that any deviations are
identified and rectifies before customers becomes dissatisfied.

The following strategic service quality framework, which is shown in Figure 4.3, can be a
useful tool to illustrate how HEIs must balance their priorities to ensure that their
customers experience an overall satisfactory SQ-level.

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 Figure 4.3: A strategic service quality framework

Source: Yeo (2008b:154)

This model focuses primarily on the student as customer, but distinguishes between two
interface levels, namely the classroom and the support services environment. A combined
customer focus on all these levels will lead to overall service quality, satisfied and committed
customers and positive word-of-mouth referrals. It also depicts the importance of
establishing and maintaining sufficient customer service levels on academic and support
domains to ensure a satisfied student as customer, and confirms that these domains cannot
be seen as unrelated or separated.

4.3.4 Service quality gaps

Christopher et al. (2002:175) defined a service quality gap as the disparity between the
anticipated service level and what the customer actually experiences. This implies that
perceptions (correct or wrong) play a big role, because the customer‘s perceived experience
influences his thinking. Other factors include:

 Past experiences

 Actual needs

 Word-of-mouth information

 Advertising

 Promotions

Therefore Christopher et al. (2002:179) identified the following two problem areas in service
quality:

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  Organizations have to interpret ―expectations‖ as the customer‘s desired level of
service and not what they expect will happen.

 Despite a certain level of need, customers may be willing to accept less – on a level
they consider to be sufficient (in certain or all circumstance). There is thus a zone of
leniency between what is believed to be satisfactory and what they require.

The quality gap is therefore a combination of facts and perceptions. The conceptual model
of service quality (Figure 4.4) shows five possible service gaps:

Figure 4.4: Conceptual model of service quality

Source: Parasuraman et al. (1985:44)

 Gap 1: not knowing what the customer expects

 Gap 2: not selecting the correct service designs and standards

 Gap 3 is not delivering up-to-service standards

 Gap 4 is not matching performance to promises

 Gap 5 (the aggregate for gaps 1-4) is thus the gap between customer expectations
and the perceived performance.

If a company‘s internal SQ-measuring instruments identify an awareness that the perceived

performance is below the expected level, it could become necessary to investigate the
reasons for such a lapse. It might be because the customers‘ perception may have been
affected by a negative encounter, or an irregularity in one specific aspect of the performance.
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It might also be because the organization has not properly understood the customer
expectations, or it is above the organization‘s capability level.

4.3.5 Service recovery

Service recovery implies finding a new and mutually-acceptable solution if a service

interaction fails or does not meet the required standards or something goes wrong).
Parasuraman (2006:591) distinguishes between outcome recovery (e.g. offering a refund)
and process recovery (e.g. offering an apology). He further states that the recovery strategy
will depend on the conditions of the situation and customer receptivity to it, as well as the
costs involved and how best to allocate resources.

Sheth et al. (2002:214) mentioned the following possible options to address the problem and
move towards a situation where it should not occur again:

 Be honest with your customer and admit that a mistake has been made.

 Do not offer excuses

 Offer a value-added reparation

 Ensure that management and staff learn from the incident, and that steps are
implemented to ensure that it does not happen again.

Their advice can and should be applied in the HEI-administrative environment and could lead
to a more pleasant customer experience, even after things went wrong. Customers will most
likely accept and even appreciate such a sincere and honest approach, because it happens
very seldom that organizations admit their mistakes and act appropriately in an effort to
recover the service experience.

Another aspect that can assist to lessen the risk or customer decay is the image of the
service provider. Gi-Du Kang et al. (2004:267) stated that customers will be more likely to
forgive a minor mistake of a service provider if it has a positive image. On the other hand, a
negative image might lead to a magnification of the problem in the customer‘s opinion,
making service recovery even more difficult. It is therefore part of a pro-active approach to
strive towards creating a positive image of a company in the minds of customers.

Aldridge et al. (1998:203) advised that HEIs should respond to negative incidents which
could lead to customer dissatisfaction, as it might lead to conflict and the possible
submission of a complaint. This pro-active approach can lower the risk of students
terminating their studies in the case of a serious service failure. It should also prevent them
from becoming disaffected, which implies that they remain in the institution, but dissatisfied
and disloyal and only aim to complete their studies and then leave. Their word-of-mouth
references will also be most likely negative.

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4.3.6 Benchmarking

Service recovery, which can be considered as a reactive measure, can be prevented if a

company uses benchmarking techniques, according to Christopher et al. (2002:181). They
state that benchmarking involves the constant evaluation of the organization‘s products,
services and practices of other organizations who are considered to be the industry leaders.
This should lead to a continuous improvement in products, services and processes. This
process can be expanded to leading organizations in other industries as well, as it is
sometimes easier to obtain information about them, whilst there are enough valuable
principles and processes to learn from and to apply. This practice already exists in the South
African HEI context, where Universities visits each other from time to time, and approach
leaders in a specific process when they need to implement or improve the same process.
The Higher Education Quality Committee process (HEQC), which will be discussed in more
detail in the next chapter, can be considered as a more formal benchmarking exercise,
although participation was compulsory.

4.3.7 Quality enhancement

Benchmarking is not the only technique that can be used, as quality enhancement, according
to Lomas (2004:158), is a more transformative process which requires a deliberate change
process that is directly concerned with adding value and quality.

Fundamental changes are required for an organization to enable it to provide quality services
and products, according to Lagrosen et al. (2006:90). They suggest that there are two ways
to change the consciousness of an organization. Firstly the composition of the staff can be
altered by recruiting people who express positive values. These staff members should still
have the required technical skills. This is obviously not practical in a large, established
university, but should be kept in mind when new service departments are established – as is
the case from time to time when the NWU‘s off-campus programmes expand. The
organizational consciousness can also be improved by using specific techniques developed
for this purpose.

According to Lomas (2004:158) opportunity costs will occur when managing quality
assurance processes and can be defined as the particular action needed to improve and
enhance quality. There are no clear indications in the literature on the precise opportunity
costs, but he emphasizes that it is incumbent upon senior managers in HE to utilize the
limited resources in such a way that the most effective choices are made.

4.3.8 Service excellence

The highest levels of superiority in many domains, including SQ, are to strive for excellence.
Anninos (2007:309) states that excellence is inseparable from the concept of good, while

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good can only be evaluated in relation to the means it serves and the functions it performs.
He has identified three hypostases of excellence, as illustrated in Figure 4.5:

Figure 4.5: The hypostases of excellence

Source: Anninos (2007:309)

 The excellent man knows exactly what his role and functions are, constantly strives
towards more knowledge, lives according to his value system, and lives in harmony
with his environment;

 The excellent citizen is also an excellent man, and cares about his society (where he
actively participates in), he has developed responsibility as a result of the first
hypostases of excellence, he becomes a creator and can be governed or will govern
if asked to do so;

 The excellent scientist or professional is also an excellent citizen and excellent man.
He seeks further knowledge in what he believes to be true. He philosophizes and
transfers his skills and knowledge to newer generations through learning, interaction
and practice.

Verma (2003:112) claims that organizations that manage to achieve excellence will surprise
their customers and delight them, a beneficial concept that was discussed earlier. It is
important for any company to set higher SQ-goals than their competitors, as a visible higher
level of SQ may attract and retain even more customers.

4.3.9 Quality in Higher Education

According to Grant et al. (2002:207) HEIs started two decades ago to implement quality
management initiatives following its success in the business environment. Brochado

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(2009:174) also confirms that HEIs should ensure that all service interactions with students
and other stakeholders are managed in such a way that it will improve the perceived SQ.
Nowadays it is a more general phenomenon, although it is still not visible or applied on all
levels in HEIs.

Nadiri et al. (2009:523) reported that SQ is a newly emerging concept in the HEI
environment, and related to student satisfaction, which was discussed earlier. They argue
that HEIs needs to attract, serve and retain students by ensuring that the students‘ needs
and perceptions related to SQ are pre-determined and then satisfactory addressed.
According to Bartlett et al. (2004:224) quality assurance in higher education delivery has
become a focus of attention and clarifies it by referring to the fact that many universities have
been privatized, as well as the Internet‘s globalizing effect on the educational market place.
This viewpoint is supported by Srikanthan et al. (2004:266), who pleaded for a new approach
towards quality management in the HEI environment. Sahney et al. (2006:266) also
observed that HEIs are more and more recognizing the importance of a customer-focused
approach and are therefore looking for new and effective ways to implement it to the mutual
advantage for all stakeholders involved. In a very recent study Trivellas et al. (2009:382)
report that quality assurance has become one of the most significant priorities for HEIs and
that it requires the constant enhancement in the simplicity, precision and dependability of
services rendered to stakeholders.

It is according to Lagrosen et al. (2004:61) even more difficult to define quality in HEIs than in
other sectors, while Oldfield et al. (2000:93), Vidovich (2002:391), Voss et al. (2007:949)
stated that quality in the HEI environment is a complex and multifaceted concept. There are
obviously many dimensions, structures and functions present in HEIs, but this study will
focus more on the administrative support environment. Sahney et al. (2004:147) defined
quality in the HEI environment as a ―fitness for purpose‖-approach, which can be supported
due to its simplicity and applicability. They also indicate that it can be defined as ―meeting
customers‘ needs‖, which is true, but can become complicated if there is no consensus on
who the customers are. Therefore note should be taken of the remarks of Abdullah
(2006a:569), who states that there are many disagreements on how to measure SQ in HEI,
and that not enough work has been done on the identification of the primary determinants of
SQ, due to the disagreements on whether students should be seen as customers or not. As
was argued before, this study believes that students in the administrative environment are
indeed primary customers and should be dealt with accordingly.

An excellent university is characterized by outstanding performance at all levels:

management, teaching, research and external engagement practices, as confirmed by
Anninos (2007:316). He emphasizes that all policies, procedures and processes in the
educational support system of the university must depict these quality principles. As an
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example he refers to teaching quality, which is a multidimensional concept and should
therefore be comprehensively assesses by students, colleagues and administrators. Ortiz-
Rodríguez et al. (2005:97) claimed that good support services and administrative practices
can play a contributing role in assisting students to accomplish their educational goals, which
should be the core business of any HEI. A similar viewpoint is stated by Ortiz-Rodríguez et
al. (2005:97) who mention that support and administrative services can motivate students to
accomplish their academic objectives.

Students nowadays have the option to enrol through distance programmes at many
international universities. The local HEI is thus forced out of its comfort zone and forced to
pay attention to their customers‘ needs and ensure that service quality received proper
attention. This was also earlier mentioned by Wright et al. (2002:24), who claimed that
―societal changes have pushed service quality to the top of the research agenda within the
higher education sector‖. The results of this can be seen in the variety of SQ models that
have been tested in and developed for the HEI environment.

It is also important to note that quality service to students remains important, irrespective of
the environment in which it is delivered, as indicated by Bolliger et al. (2009:104). Although
the situations differ between the on-and off-campus students, they all require and expect
quality services to enable them to successfully complete their studies.

According to Athiyaman (2000:54) it is essential to manage the service quality at an HEI in

an effort to attract and retain potential students. Once these students are enrolled, the
service encounters must be managed in such a way as to lead to satisfaction and positive
word-of-mouth referrals. This is important due to the global competitive situation, according
to Ehigie et al. (2009:511). They are of the opinion that HEIs will have to get involved in a
change process and adopt an entrepreneurial approach to improve their service to their
customers and stakeholders. They identified the use of RM as one of these approaches to
gain and maintain customer expectation, perceived service performance and eventually
loyalty. Although their statement can be supported, it is unclear why they referred to an
―entrepreneurial approach‖, and not directly to a RM-approach.

Sahney et al. (2006:267) proposed that quality in education has three components:

 Quality of inputs refers to the students, infrastructure, personnel and support services.

 Quality of processes is related to teaching and learning activities, although it could

also be argued that there are administrative processes that form part of this item.

 Quality of outputs delivers equipped and satisfied students. All the above
components contribute to achieving this valuable state.

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HEIs have existing structures and practices that make it difficult to add values that would
normally be enhanced in a service environment, stated Sharrock (2000:151). He also
suggests that quality thinking can be applied by streamlining complex administrative
processes. Srikanthan et al. (2005:71) agreed and confirmed that quality will only be
sustained and enhanced if the organization is willing and able to improve their processes and
practices. Both these arguments are true and very applicable in the modern HEI. Without it,
service quality and customer satisfaction, loyalty and advocacy will be very difficult to
achieve.

According to Wright et al. (2002:24) older students do not see education as different from
other service providers and therefore expect the same levels of service excellence and this
implies that HEIs will also have to be committed to a process of constant quality
enhancement and appraisal. They also claim that more students are working part-time,
causing their disposable income to be limited, and causing them to insist on superior quality
and appropriate services in exchange for their time and money. This is most likely true for
the off-campus students in the South African HEI context.

4.4 Total quality management (TQM)

SQ was discussed at length in the previous section, and shown to be relevant and applicable
to the HEI environment. In order to gain a more comprehensive picture of the quality-
environment, it is also necessary to look into total quality management (TQM), and to
determine whether it is also appropriate apply its principles to the HEI environment.

TQM can also be described as one of the popular buzzwords in the business world. Zink
(1998:41) describes TQM as an ―integrative management concept‖, while Ross (1999:3)
considers it as system-based approach among all the divisions of the organization and refers
to the concept of synergy to underline its advantage. Although not all companies knows how
to implement it effectively, Kotler et al. (2001:10) observed that many companies have
adopted TQM-programmes recently with the aim to improve the quality of their products,
services and marketing processes.

TQM can be considered as one of new branches of RM, because it inspired the concept of
relationship quality, according to Gummesson (2002:11). New efforts are thus put in place to
improve the quality of relationships. The focus therefore moves away from merely ensuring
the quality of goods and services, to building lasting relationships with satisfied and loyal
customers through the provision of quality goods and services. It is also important to link a
TQM-approach with the attitudes and behaviour of customers, according to Alves et al.
(2006:3), as the competitive nature of business forces companies to survive by edging their
rivals and thus ensuring the retention of satisfied and loyal customers.

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Glaser-Segura et al. (2007:121) distinguished the elevation of the customer to the focus point
of quality improvement initiatives as a central TQM-principle, and argues that the customer is
responsible for defining the values and quality of services they are willing to pay for by
choosing a service provider after they have evaluated all options. In the same line, Becket et
al. (2008:43) argued that TQM has the potential to cover both the internal and external
stakeholders‘ quality viewpoints

According to Srikanthan et al. (2005:9) quality in HEIs must be improved and frequently
evaluated. They consider it as one of the most contemporary issues on the HEI-agenda.
They refer to the initial research in the 1980‘s that suggested that the TQM-model should be
used for HEIs as a model for governance, but argues that difficulties arose due to its core
thrusts (education and service) and therefore proposes that a more holistic approach is
necessary.

4.4.1 Definition of TQM

According to Egan (2008:295) TQM can be defined as ―a management strategy aimed at

ensuring awareness of quality in all organizational processes‖. Boloko (2009:11) states that
the staff members closest to the daily operational procedures should be in the best position
to recognize and improve the quality of those actions. Effective TQM-measures should
establish the best environment where constructive relationships exist between management
and staff, and where people are motivated to excel in their jobs.

Becket et al. (2008:44) defined TQM as an all-inclusive management style which entails the
involvement of all members in a company to strive towards long-term advantage for all
stakeholders. A very similar TQM-definition is provided by Alves et al. (2006:3), who focused
on the need for an effective and integrated effort to develop, maintain and improve quality to
all parties involved in a company and on all important areas, including marketing,
engineering, production and services. It is also suitable for and applicable to HEIs.

TQM in the HEI environment is defined by Lomas (2004:160) as a comprehensive quality

management approach that involves support staff as well as academic staff and that it
focuses on all organizational activities, including teaching, researching, managing, catering
and housekeeping. It is thus a total approach that encourages concentration on the core
activities of Universities when striving to establish quality within a culture.

A well-balanced definition of TQM, is that of Baran et al. (2008:83) who considered it as a

management philosophy which is based on the improvement of quality, but while reducing
costs throughout the value chain of the organization.

Sahney et al. (2004:146) placed the emphasis where it belongs, namely on the customer
focus and states that the aims of TQM should be on continuous improvement and meeting
customers‘ requirements. They admit that the single, standardized theory of TQM does not
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exist yet. This might however be one of the strengths of TQM, as is remain adaptable and
can be adapted for any organization.

From the above, TQM can therefore be defined as a wide-ranging and broad quality
management endeavour that should include all aspects and sectors of an organization
and should be visible in all policies and procedures. The outcome of such an
approach should be visible and clearly measurable and should lead to more satisfied
and loyal customers.

4.4.2 TQM dimensions

TQM is a very comprehensive concept, as has been shown in its different definitions. In
order to get a better understanding of the TQM-concept, it is necessary to investigate the
dimensions of TQM. It was identified by Tena et al. (2001:935), and they consider this to be
a multi-dimensional concept:

 Customer focus

 Continuous improvement

 Employee fulfilment

 Organization as a complete system

All of these dimensions have been identified before in the effort to define TQM, but this
model combines them well and makes it easier to comprehend TQM as an entity.

4.4.3 TQM in education

According to Srikanthan et al. (2005:69) HEIs started during the late 1980s to raise
awareness about the application of TQM in their environment, as quality was suddenly
placed on their agenda. It was preferred because TQM‘s holistic approach is capable to deal
with both educational and service requirements. One of the earlier studies to confirm this
was when Kanji et al. (1999:135) reported that several TQM-models were used at many HEIs
across the world. They further noted that it was useful due to the fact that it aimed to
represent interrelations between the different quality dimensions and that TQM can be used
to accomplish constant improvements in HEIs, even if there are no quality-related problems
present.

This is supported by Sakthivel et al. (2005:585), who believed that the goal of TQM is ―to
provide quality education so as to ensure students‘ satisfaction‖. Although they do not refer
specifically to the support environment, the focus on customer satisfaction is adequate to
ensure that all systems will have to support this notion. Li-Wei Mai (2005:863) highlights this
when reporting about the application of TQM in HEIs: ―The physical evidence associated with

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a service is now playing an increasingly important role in contributing to the level of
satisfaction‖.

Another reason why TQM landed on the HEI-agenda, was the new competitive nature in the
educational marketplace (which will be discussed at length in the next chapter), as well as
the fact that students also became more aware of their role as customers, and their rights to
quality education and service, as pointed out by Alves et al. (2006:4). HEIs started to realize
this and attempted to initially improve the quality of courses, but also later the services they
rendered. Student questionnaires assisted in highlight the importance to focus on all quality-
related aspects, which is in line with TQM-principles.

According to Quinn et al. (2009:139) TQM is the most popular quality improvement
methodology in the HEI environment, but has found that it is more successful in the
administrative environment and where auxiliary services are rendered. This statement can
be supported given the background obtained during the literature review process.

Glaser-Segura et al. (2007:123) argued that the application of TQM at HEIs implies that
students need to be involved as ―principal customers and co-participants.‖ This is illustrated
very effectively in Figure 4.6:

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 Figure 4.6: Measuring academic excellence model

Source: Kanji et al. (1999:139)

It clearly shows many of the principles and concepts described up to now in this literature
review, as well as the balance between the academic core functions of teaching and
learning, and the administrative support functions. The following principles and concepts
need to be highlighted:

 Customer delight: The provision of a constant excellent customer experience, as

discussed earlier. This applies to all internal and external customer groups.

 Data management: Use date obtained from in-house assessment processes to

improve customer service levels.

 People management: Applying the principle that well-trained and motivated staff are
any organization‘s best assets by supporting them and providing constant and
effective opportunities to further improve their skills and competence levels, as will be
discussed later in this chapter.

 Continuous improvement: The principle that the management of SQ is a constant

process of striving to improve service levels. It is therefore necessary to obtain

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 accurate and constructive feedback from all stakeholders, to process that data (as
mentioned) and implement effective steps to increase SQ-levels. This is confirmed
by Ortiz-Rodríguez et al. (2005:101), who studied the quality perceptions of distance
students and found that they identified communication as the most important factor to
ensure quality, and considered ―feedback as the most essential factor affecting
quality communications‖.

Mergen et al. (2000:345) developed a TQM-model that was used by the Rochester Institute
of Technology and found to be very effective. It can be applied more widely to the HEI
environment, as it indicated continuous feedback mechanisms and constant improvement
processes and measures the quality of the design, the conformance and actual performance
on a cyclic basis. It requires that staff must define who their customers and their needs are,
improve their processes, deliver services to the customers and measure their satisfaction.

The three components of this model, shown in Figure 4.7, are:

 Quality of design, which deals with establishing a service‘s characteristics in a

specific market at a specified cost. A good example in the HEI-operational
environment will be the redesigning of the registration process for students, as was
suggested before.

 Quality of conformance indicates how well the HEIs and stakeholders agree with the
design requirements, including the costs. The retention of students is a good
example in the HEI environment.

 Quality of performance measures how well the service performs in the marketplace
and whether it is accepted by the customers, for instance whether graduates are
easily employed.

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 Figure 4.7: TQM model in higher education

Source: Mergen et al. (2000:348)

It was evaluated and tested by Grant et al. (2002:208) and they found that all three
components were equally important and significant. There are some similarities between this
concept and the CEM-process illustrated earlier in Chapter 2.

In their study Aly et al. (2001:130) found that 94% of HEIs that implemented TQM
experienced improvements, with the majority (65%) indicating that their service quality levels
improved and 53% experiencing improved management of their processes. Staff also
indicated a higher awareness about students and their needs. They recommend that HEIs
should start to implement such an approach first with the administrative processes, because
of its similarity to the business environment. On the negative side, nearly two-thirds of HEIs
reported a resistance to change towards TQM-practices, which is not a surprise and serves
as a warning to HEIs that even though the importation of a SQ model can be beneficial, there
will be most likely a resistance to any new and uncertain approach.

4.5 Changing the culture of an organization to focus on service quality

Lagrosen (2003:473) argues that TQM can only be successfully implemented at a company if
there is a corresponding change in the organizational culture. He warns that this will not
happen easily, as most companies‘ values and culture are deeply-rooted and will not be
changed easily. This will not only apply in the case of implementing TQM, but for any quality
management initiative, model or approach. This is confirmed by Baran et al. (2008:481),
who warn that the corporate culture of an organization must be changed to accommodate
CRM and its principles.

Organizational culture is reflected at the common values and viewpoints of its staff and can
be defined as the shared or combined personality of a HEI, according to Trivellas et al.

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(2009:386). They also describe it as the atmosphere that is created by the societal and
professional exchanges of the individual staff of the institution.

The successful embedding of a quality culture should lead to university students receiving a
first-rate education, according to Lomas (2004:163). The beneficiaries of such a proposed
change in culture should be the students (in their own personal growth and development), as
well as the country, since well-trained graduates should also contribute to the country‘s
economic and social prosperity. Although this study refers to the UK, these principles can
also be applied to the NWU and the South African HEI environment.

4.5.1 Cultural changes in the HEI environment

Most of the Universities world-wide can be considered as having expert lecturers in subject
fields like RM, CRM, TQM, learning organizations and service quality. For those HEIs to
benefit from this knowledge, it needs to be transferred to the support structures – most likely
via the deans and the registrar. The challenge is to successfully transfer that knowledge to
functional skills and practices in the different service departments‘ front desks, back offices
and systems. As has been pointed out, there is still a wide belief that students should not be
considered as customers and therefore not necessarily treated according to the accepted
customer service-principles.

Lomas (2004:157) states that the challenge is to entrench a quality culture within a University
that is evident by a university-wide commitment to a shared vision and a desire for a
continuous enhancement of service levels. This is necessary, because the same corporate
competitive environment existing in the business-world, is becoming more prevalent in the
HEI environment, with students acting more like customer, as pointed out by Yorke (2000:74)
and Vidovich (2002:396).

The choice of quality management initiatives will depend in part on a university‘s definition of
quality and suggests that a favourable organizational culture is required in order that new
ideas can be discussed, assimilated, modified, accommodated and then implemented,
according to Lomas (2004:160).

Berry et al. (2002:85) warned that it is a slow process to establish a customer experience
focus culture in a company. Therefore the management of an HEI should take it into
consideration when planning a more customer-centric culture implementation process, and
monitor the progress constantly and accurately.

4.5.2 Senior management commitment

A change management process can expect a lot of resistance from staff, as has been
confirmed. Therefore it is important that the leadership of an organization must drive the
acceptance of a customer-focused approach through their use of the system and their public

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commitment to its success, as stated by Baran et al. (2008:481). They should have clearly
defined responsibilities and also the authorization to initiate and manage the required
changes, according to Shutler et al. (1998:157).

Lomas (2004:162) argues that if quality is to be embedded successfully in a university, then

high-level management and leadership abilities will be crucial. He suggests that the following
major challenges might be problematic for senior staff:

 Determining the appropriate strategy

 Implementing the appropriate strategy

 Putting in place the organizational structure

 Developing a conducive and supportive organizational culture. Rich (2000:174)

warned that there is a growing recognition that awareness of a customers‘ corporate
culture can have a acute effect on the ability of service providers to establish
meaningful relationships with customers.

Managers must ensure that any changes in culture or approach should be implemented
steadily and staff should receive understandable and thorough information about the new
approach, the logic behind it, and the expected benefits for all stakeholders, as proposed by
Lagrosen (2003:485). There must also be open communication channels to allow them to
voice any concerns or uncertainties. Care should also be taken to document these changes
in detail and publish it in manuals. The ISO 9000-process, which will be discussed in the
next section, is a good example of such a thoroughly-documented quality management
process.

It is further suggested by Lomas (2004:162) that transformational leaders, and not

transactional managers, are required to embed quality. Srikanthan et al. (2004:272) shared
the same viewpoint and claimed these transformational leaders have special characteristics
that enable them to create, encourage and preserve the atmosphere for changes in the
organizational culture and –processes. In a later study Srikanthan et al. (2005:76) claim that
the leadership of senior management‘s will require the ability to successfully convert the
realities of the commercial world into the internal life of the HEI. Their role as change agents
is therefore vital and it is imperative that they lead by example, as also confirmed by
Sakthivel et al. (2005:576). They further state that effective leadership will proof itself in the
principle of ―what is preached has been practiced‖. They also state that senior management
must ensure that all systems and staff cooperate to ensure the fulfilment of the agreed
objectives of customer focus and satisfaction.

The top management of HEIs should be directly involved in the quality management
processes, and be willing to invest in the process, as was suggested by Krishnan et al.

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(2000:848). This top-level commitment concept is supported by Michael et al. (2004:200)
and Becket et al. (2008:44). Roca-Puig et al. (2006:1122) suggested that this should include
their involvement at both technical (hard effect) and functional (soft effect) quality
management levels and argue that it will have a considerable influence on customer
satisfaction levels. The same distinction between technical and functional aspects was
earlier confirmed by Gi-Du Kang et al. (2004:267).

Lomas (2004:160) also highlights the fact that ―the inter-relatedness and interdependence of
strategy, structure and culture‖ implies that all these concepts will necessitate the continuous
awareness of management.

4.5.3 Staff training

There have been numerous references in this study on the importance to ensure that staff
that deal with customers should be properly trained and empowered to understand the
different components of a customer-focused approach and how to implement it in a practical
manner and on a daily basis.

It is vital to ensure that a company‘s own staff members are also satisfied and loyal, and
build their careers to ensure transfer of positive skills and good return in investment in terms
of staff training. Hill (2006:11) claims that many organizations have failed to communicate
the importance of improving customer service to their staff. It is therefore vital that these
concepts should be relayed to staff before enrolling on a training schedule. They should also
understand the importance and relevance of the training programmes and not see it as a
mere break in the daily routine.

Sheth et al. (2002:75) stated that ―these frontline staff should be able to tune in on a personal
level with the client‖. They should therefore be able obtain the necessary detail without
impeding on the customer‘s privacy. The customer‘s body-language and tone of voice
should be studied to attempt to determine their actual message and intentions. It can take
years of experience to develop these skills, but staff should also be trained and sensitised on
these vital facets of customer service and retention. The reference to providing the customer
with ―sufficient breathing space― is valuable advice, as it emphasizes the principle of the
difference between a CRM- and CEM-approach as was discussed earlier. Many
organizations still make the mistake of implementing processes and systems they think will
resolve the customer‘s problems, without giving the customer the opportunity to speak their
mind and even vent their anger and frustration at someone. Therefore it is important that
staff should be properly trained and sensitized to understand this concept. They should also
be reassured that dealing with angry and frustrated customers is not necessarily a pleasant
experience, but still a valuable opportunity for the company to identify problem areas and
create opportunities to rectify it and improve further on their SQ-levels. The alternative,

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having dissatisfied customers leaving without speaking their minds might be easier on the
front-line staff, but creates the dangerous situation of a company thinking that all is well,
while there is a continuous customer decay process happening without the staff knowing
about it. According to Nadiri et al. (2009:532) it is therefore imperative to have well-trained
staff that understand and practice the expected SQ-levels.

Administrative staff should also receive social skills training to assist them to interact better
with students, according to Lin et al. (2008:409). They proposed the use of focus groups and
involving students in training sessions to create different realistic situations in the interaction
with them. They further claimed that such an approach can assist to show students more
about the administrative support that is available to them and can therefore be a mutually-
beneficial process. It supports the concept discussed on the previous page, and also
underlines the importance of recruiting and appointing front-line staff that have the potential
and personalities to allow these social skills to be developed and nurtured.

An interesting observation of DeShields et al. (2005:138) is that the mere presence of well-
trained staff and competent staff will not necessarily satisfy students, but their absence will
negatively affect the SQ-experience of the students. Administrative staff should thus be
trained not to expect gratitude from students after each service encounter, but still realize
that their contribution is vital and the negative impact will be visible should they be absent or
lower their standards.

4.5.4 Team design and effectiveness

A vital aspect in any organization that is needed to ensure efficient SQ-levels is the
composition of the teams that deals with customers in the front and back offices. Helfert et
al. (1999:6) focused their work on the team composition, or number of persons involved in a
team. They recommend that the team should be just large enough to do the work it is
required to do (apply the principle of least group size) and warns that smaller groups are not
technically able to perform its tasks, while there is the risk of process losses and social
loafing” in larger group. They should have technical skills and boundary-spanning
competence, as well as the following social competence characteristics:

 Communication ability

 Extraversion

 Conflict management skills

 Empathy

 Emotional stability

 Self-reflectiveness

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  Sense of justice

 Cooperatively.

These skills can be nurtured and improved, but it is vital in the recruitment, selection and
placement of new staff to ensure that new appointees have the necessary basic
competencies and capabilities referred to above. It should be recognized that some
personality types will find it more difficult to display or develop these characteristics. If there
are front-line staff members whose personalities are incompatible with these characteristics,
it should be considered to move them to an environment where they do not deal directly with
customers.

Egan (2008:181) claims that employee staying longer with a company will also be more
familiar with it. It is therefore important to attempt to retain experienced and customer-
focused staff by creating an environment they enjoy to work at. Staff retention efforts should
therefore also be a management priority, especially valuable and experienced staff that
displays and practices the above characteristics.

It is also important to ensure that new values are created and enhanced during a training
programme. The following six values are more important than others and should be nurtured
and further developed in staff, according to Lagrosen et al. (2006:87):

 Customer orientation implies that all efforts should be directed at satisfying the
customer

 Leadership commitment, including top management

 Participation of everybody implies total commitment of all staff members.

 Continuous improvement refers to a dynamic environment.

 Process orientation implies that for every process there should be a responsible
person.

 Management by facts indicated that all decisions taken should be based on reliable
facts.

Srikanthan et al. (2004:276) focused on two of these values and claimed that improvement
and accountability are both known aspects of quality assurance and that if improvement is
enhanced, accountability should be developed automatically. It therefore supports the
principle of creating a sense of ownership of the quality management process on all staff
levels.

According to Helfert et al. (1999:2) the presence of a universal, understandable, challenging

and exact objective for each team, will ensure that the members are committed and will have

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a motivating, simplifying, and synchronising function, and should also lead to a reduction in
conflict.

Intrinsic rewards seem to be a more effective indicator of SQ, and that external rewards (at
organizational and social levels) should be applied with more care, as was reported by
Malhotra et al. (2006:10). They would rather influence the employees‘ job attitude than the
SQ-levels they produce. Further research about this subject is proposed, as staff retention is
a vital component to ensure consistently high SQ-levels.

4.6 Service quality processes and -models

The theoretical background of SQ and TQM has shown several important components. It is
necessary to look further into some applicable SQ-processes and -models in order to
measure whether a company is on target to achieve its agreed SQ-or TQM-goals.

There is also a need for an evaluation system in HEIs to give the student the opportunity to
report on their experiences with staff and processes, as monitoring reliability becomes very
important in maintaining quality levels, according to Clewes (2003:70). Tan et al. (2004:23)
predict that there needs to be an increase in the use of assessment tools as attention to
service quality in HE heightens.

Christopher et al. (2002:175) claimed that service quality is a function of customer

perceptions and the organization‘s resources and activities. It can therefore be defined as
the match between what customers expect and what they actually experience.

It is argued by Clewes (2003:71) that because of the distinctive characteristics of service, a

distinctive approach of defining and measuring service quality is required. A service-
marketing detention of quality revolves around the idea that quality has to be judged on the
assessment of the user of the service.

There are a large number of SQ models reported in the literature, as reported by Abdullah
(2005:307), but there is still no consensus on the most effective SQ model for the HEI
environment. Therefore the most important ones will be discussed briefly below, after which
the most appropriate model will be indicated.

4.6.1 A brief discussion of the different SQ processes and models

4.6.1.1 ISO 9000-process

According to Becket et al. (2008:44) the International Organization for Standardization (ISO),
an international standard-setting body, developed their ISO 9000 quality assurance standard
and focuses on constant involvement and a pro-active approach. It strives to improve
customer satisfaction and attain continuous quality enhancement.

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Shutler et al. (1998:155) and Sakthivel et al. (2005:575) stated that the ISO-processes can
be considered as being associated with TQM, as it utilizes TQM-philosophies and focuses on
customer satisfaction. TQM has been discussed at length and shown to be applicable in the
HEI environment.

One limitation might be the specific requirements referring to product design, failure and
processes, as reported by Shutler et al. (1998:153). This implies that ISO is more applicable
for the production- or manufacturing environment, but it could also be argued that the ―raw
material‖ referred to is the new students, while the manufacturing process represents the
learning environment, and the quality control phase is the examinations. The study guides
can also be seen as part of the physical materials used in the process. It therefore seems
that the argument of applying ISO in HEI can be useful. This is in contrast with Yeo
(2008b:152), who emphasizes that there are no real products involved in the HEI
environment, and that the major differences between HEIs could be perceived as the
differences in customer experiences. Both arguments have elements of truth that are
applicable and useful.

Lagrosen et al. (2006:88) are of the opinion that the ISO 9000-standard is the most
frequently used quality management model, as it contains a large number of criteria. If a
company manages to follow it and all processes are properly documented, they can be
certified as being in line with the ISO-9000 standards. This might bring a market advantage.
It should be noted that ISO 9000-certified companies do not necessarily have high quality
products or services, but proves that the company works with quality in a systematic manner.
Quality outcomes are thus not guaranteed.

They also mention the concept of quality awards, where a number of criteria (with point
values) are drawn up and reports are submitted to a group of referees who will determine to
whom these awards should be allocated. These are powerful tools to locate good examples
of quality, and to even improve on them.

Yeo (2008b:153) also reports that many HEIs are following the ISO 9000-system in a ―quest
for excellence‖. This was confirmed earlier by Shutler et al. (1998:152), but they admit that
the research on this relationship is very limited. There is still no evidence that ISO 9000 or
related processes are being used in the South African HEI context, but it should be a natural
development in the near future given is close association with the TQM-approach and its
capabilities within HEIs.

4.6.1.2 Six Sigma

According to Watson (2003:96) Six Sigma is a cost-reducing quality management process

which was developed for the production environment in the 1980‘s and uses analytical

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methods to achieve near-faultless outcomes. This is in line with the description of Woodall
(2001:600), who describes the Six Sigma as a ―defect-free process‖.

It was later expanded to be used in all business environments, and focuses initially on the
below-standard performance sections. Agreement is then reached on a satisfactory,
measurable performance level and the situation is monitored until the goal has been
reached. It is, however, unlikely that this is the most appropriate approach for the HEI
environment.

4.6.1.3 EFQM

Becket et al. (2008:44) describe the European Foundation for Quality Management (EFQM)
Excellence Model as a ―non-prescriptive framework‖ with nine criteria suitable for any type of
organization striving towards excellence, while Michael et al. (2004:201) earlier reported that
the EFQM-model could assist in creating a more customer-focused culture for HEIs by
learning from the mistakes made in the business environment.

4.6.1.4 SERVQUAL

SERVQUAL is based on the theoretical gaps model and defines SQ as the difference
between what is expected from a service encounter and the perception of the actual service
encounter, according to Brochado (2009:176). It has five generic dimensions:

 Tangibles: physical facilities, equipment, appearance of personnel

 Reliability: ability to perform the promised service dependably and accurately

 Responsiveness: willingness to help customers and provide prompt service

 Assurance: Knowledge and courtesy of staff and their ability to convey trust and
confidence

 Empathy: caring, individualized attention

Alves et al. (2006:2) reported that the main purpose of SERVQUAL is to determine the final
customer‘s SQ-perception. The fact that SERVQUAL attempts to functionalize SQ by
comparing the perceptions of the service received with the expectations of the customer is
confirmed by Abdullah (2005:306).

It is most valuable when it is used periodically, according to Alves et al. (2006:5), which
provides the benefit of being able to classify customers in different segments according to
their perceived SQ-levels experienced.

It has been used and tested extensively in the HEI environment, but heavily criticized by
most authors. Slade et al. (2000:1200) used it, and reported that SERVQUAL has both
strengths and weaknesses as a measuring instrument. Yeo (2008a:270) also used
SERVQUAL and reported limited results. Chowdhary et al. (2007:506) are also critical and
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found that no basic generalization of the relative significance of the determinants of SQ is
possible with SERVQUAL, while Aldridge et al. (1998:200) earlier found that its application in
HEIs was not successful. They are of the opinion that it is due to its static measurement
approach. According to them it provides a ―snapshot of satisfaction or perceptions of quality
at one point in time‖ and claims that it does not ―tell the whole story‖. This is a valid criticism
and should be kept in mind when structuring an SQ measuring instrument.

The following further criticisms about SERVQUAL are expressed by Alves et al. (2006:6):

 It measures expectations that cannot exist.

 Results can be influenced by a low response rate.

 There are weak discriminations between the measured dimensions.

 The results cannot easily be generalized to other similar businesses.

 It is difficult to interpret the results.

 Negative reactions from participants have been reported, especially when the test is
done frequently.

 The nature of the instrument is very broad and non-specific.

4.6.1.5 SERVPERF

Brochado (2009:176) describes SERPERV as a variation of SERVQUAL, due to its focus on

the perception component only and considered as one of the most widely-adopted
techniques according to Clemes et al. (2008:296). Abdullah (2005:306) describes SERPERF
as an inadequate SQ-measuring model in the HEI environment, because it is a
―performance-only‖ based model. It therefore only maintains the perception of SQ. This was
confirmed in another study by Abdullah (2006b:85), who states that SERVPERV ―performed
miserably‖ in the HEI environment.

On the other hand, Nadiri et al. (2009:527) claimed that only two of the five dimensions of the
SERVPERF-instrument were formed in their study, but that the instrument did maintain its
reliability in the HEI environment.

4.6.1.6 Evaluated Performance (EP)

According to Abdullah (2005:206) the EP-scale attempts to measure the difference between
the perceived SQ-performance and the ideal amount of a specific SQ-feature, and not the
expectations of the customer.

4.6.1.7 UNISERQUAL

Athiyaman (2000:51) criticized SERVQUAL and claimed it is not a valid measurement

instrument of service quality. UNISERQUAL, a 14-item service quality measurement
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instrument was then constructed and tested. It was more focussed on service quality in the
classroom and therefore not suitable as a SQ-instrument for this study. Athiyaman (2000:52)
analysed the reliability of UNISERQUAL and reported it to be within an acceptable range, but
this model was not tested and used by other researchers, .making it difficult to establish its
true value and application. It is not appropriate for his study due to its focus on academic
areas and other issues not related to the administrative environment at HEIs.

4.6.1.8 HETQMEX

Although it is a slightly older model, HETQMEX needs to be discussed, as it was based on

the TQM-principles, but adapted for the HEI environment. It was developed by Ho et al.
(1996:41) and was based on the fundamental SQ-concepts, including the five-s, marketing
and educational quality control, circles, ISO 9000 and total preventative maintenance. Their
process does contain recommendations that can be applied, including:

 Involving senior management and obtain their commitment (as has been mentioned)

 Assessing the current quality system situation, which will be useful.

 Creating a documented implementation plan, which is in line with ISO and TQM.

 Providing training to staff, which also has been proposed.

 Monitoring progress, which can also be supported in principle.

HETQMEX contains valuable advice and can be used as a control mechanism when
developing an SQ model.

4.6.1.9 HedPERF

Brochado (2009:177) depicts HedPERF as an HEI specific scale that focuses on all aspects
in the total service environment of the student, while Abdullah (2005:206) describes
HedPERF as a ―new and more comprehensive performance based measuring scale that
attempts to capture the authentic determinants of service quality within the higher education
sector‖. He further reports that HedPERF has been empirically tested for reliability, validity
and uni-dimensionality.

SERVPERF was used as a basis to develop HedPERF, as 13 of its items were adapted from
it, according to Abdullah (2006b:78). Another 28 items were generated from several
qualitative research inputs and literature studies, including focus groups and pilot tests and
the final product was divided into four factors, namely non-academic aspects (included
aspects related to the willingness and capability of administrative staff to render support
services to students), academic aspects (dealing with the responsibilities of academic staff,
including characteristics like good communication skills and providing feedback to students),

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reliability (referring to the delivery of accurate, dependable and timely services) and empathy
(indicating personalized and individualized attention to the students).

After re-testing the HedPERF model, Abdullah (2006b:85) modified the factors to five,
namely:

 Non-academic aspects

 Academic aspects

 Reputation

 Access

 Programme issues

He found that this modified HedPERF-model was more specific in area where SQ needed to
be evaluated in the HEI environment.

4.6.1.10 Merged HedPERF/SERVPERF

In an effort to find the most appropriate SQ model for the HEI environment, Abdullah
(2005:206) proposed a merged model between HedPERF and SERVPERF. This was done
in an effort to find the measuring scale with the most outstanding measuring potential, but
later found not to be as effective as the HedPERF model itself.

4.6.1.11 University Quality of Life and Learning (UNIQoLL)

Audin et al. (2003:365) developed this self-evaluation model for HEIs to monitor students‘
perceptions about the services they receive from their university. They decided not to use a
conventional satisfaction survey, but focused on the overall quality of life experienced by
students over the term of their studies (a longitudinal approach) after determining their
baseline values. The results are disaggregated by academic staff to allow the university to
reveal and study local variations. Although this approach can be fruitful, it covers too many
fields to be relevant for this study, including academic matters and facilities on campus.

4.6.2 The most appropriate SQ model

In his comparative study to identify the most appropriate SQ model for the HEI environment,
Abdullah (2005:317) found that the HedPERF scale is more suitable for the HEI-service
settings, as is showed a better reliability, greater criterion and construct validity, greater
explained variance and a better fit than SERVPERF and the merged HedPERF/SERVPERF
models.

In another comparative study, Brochado (2009:181) found that the HedPERF model presents
a high level of internal consistency and that its overall score offers a high correlation extent
with:

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  Overall satisfaction

 Intentions to further studies

 Word-of-mouth referrals.

The results of these thorough evaluation processes are supported and the non-academic
aspects of the HedPERF model will be used in this study, as will be discussed and motivated
in more details later in paragraph 5.3.1.

4.7 Conclusion

An effective quality management system is a non-negotiable reality for any organization that
wants to grow and retain customers in a profitable manner. It has been shown that SQ is an
independent and sustainable entity with several definitions and applications, but a specific
administrative relevance in the HEI environment.

It was also shown that there are several levels at which SQ can be applied and enhanced by
using different techniques. It was acknowledged that these processes can have a constant
cost implication for companies, but that it should rather be seen as an investment
component, since it can lead to future savings in marketing- and other related costs.

The importance of the perceived and desired SQ levels of customers was discussed, as well
as the highly-applicable gaps theory. Because of the reality of service failures, some service
recovery strategies were mentioned and supported.

It is also clear that TQM is a comprehensive and popular SQ-approach, with proven results in
the business environment and also at some HEIs, but that more comprehensive applications,
especially in the administrative environment need to be researched further.

It is however argued that the all-inclusive approach suggested and applied in TQM is in line
with the integrated customer experience management-approach constructed in a previous
chapter and that these two premises can be treated as interrelated concepts.

Several SQ-measuring instruments were discussed and some shortcomings when applying it
in the HEI environment were highlighted. The HedPERF-model seems to the most
appropriate in the administrative environment of a University and some elements of it will be
used in the research model of this study.

The relevance of such an effective SQ approach in the HEI environment was supported, due
to the competitive nature of the industry, which will receive detailed attention in the next
chapter. Several constructs have been discussed in the previous chapter, and in each case
the applicability to the HEI environment was discussed. In the last literature chapter these
concepts will be referred to again, but with a specific focus on the North-West University

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(NWU), where this study was conducted. It will also look at the existing customer experience
and SQ related practices at the NWU.

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